2. Alternative Energy Technologies: From Inception to Market Russ Keller Senior Director, Alternative Energy Programs South Carolina Research Authority 30 April 2008

3. Who We Are SCRA is a global leader in consortium management –We are a public, non-stock research and development company with core competencies in: Building Collaborations Managing R&D Programs Developing Technology Roadmaps for Industry –Our clients include: Department of Defense Department of Homeland Security Department of Energy Department of Transportation National Institute of Standards and Technology Others –We manage numerous collaborations in fields that include: Supply Chain Management Advanced Composite Materials Security Intelligence Fusion Defense Interoperability Alternative Energy IT for First Responders Cost Reductions at U.S. Shipyards Knowledge Economy Development COMPANY PROPRIETARY ©2008 By SCRA. All Rights Reserved

4. SCRA’s Energy “Network” National –National Energy Marketers Association (Board Member) –National Hydrogen Association (Member) –US Fuel Cell Council (Member) State –South Carolina Biomass Council (Executive Committee Member) –South Carolina Department of Agriculture / South Carolina Energy Office (Member of Review Committee for SC Renewable Energy Loans and Grants Program) –South Carolina Hydrogen and Fuel Cell Alliance (Member) Existing energy-related consortia that SCRA manages –University of South Carolina – City of Columbia Fuel Cell Collaborative (hydrogen and fuel cell technology) –International Intelligent Manufacturing Systems Collaboration (Head of Delegation for the United States) –Next Generation Manufacturing Technology Initiative (R&D for improved manufacturing processes for power sources) –Cast Metal Coalition (energy savings for metal casting processes) –Copper-base Casting Technology (electrical motor energy efficiency) COMPANY PROPRIETARY ©2008 By SCRA. All Rights Reserved

5. Access to Leading-Edge Research SCRA’s collaboration partners and customers include world leaders in basic and applied research –Colleges and Universities Carnegie Mellon University Case Western University Clemson University Colorado School of Mines Massachusetts Institute of Technology Pennsylvania State University Purdue University Texas A&M University University of South Carolina And many others –Federal R&D organizations Army Research Laboratories Office of Naval Research UT Battelle –National Labs Oak Ridge National Laboratory Savannah River National Laboratory COMPANY PROPRIETARY ©2008 By SCRA. All Rights Reserved

6. Insights into Emerging Markets SCRA’s positioning within our existing networks and collaborations gives us unparalleled insight into: –A broad spectrum of emerging alternative energy technologies –Having near-market-ready applications –For existing and prospective customers whose business requirements span the full array of size and scope From individual consumers through federal departments For niche applications or primary energy demand –Across military AND commercial environments COMPANY PROPRIETARY ©2008 By SCRA. All Rights Reserved

7. Alternative Energy Notional Examples Hydrogen and fuel cell technology for early markets in portable power, stationary power and transportation/mobility applications (ongoing SCRA collaboration with Ohms Energy) Marriage of digester technology with large fuel cells to turn agriculture waste into an energy-independent poultry farming operation Thermal gasification technology to convert biomass (including municipal solid waste) into heat, power and liquid biofuels Technology applications that recover petroleum-based constituents from non-recyclable plastic waste Biofuel feedstock R&D on low input / high yield sources, including sweet potatoes, switch grass and wood waste Sustainability initiatives to reduce energy consumption, improve energy efficiency and shift electrical demand away from peak loading periods And more….. like the presentation that follows this one COMPANY PROPRIETARY ©2008 By SCRA. All Rights Reserved

8. Power – Enormous Range of DoD Needs 10 1 10 2 10 3 10 4 10 5 10 6 10 7 10 8 Power, Watts FUEL CELL MILITARY COMMERCIAL Individual Marine Residential Automotive Electronics Ship Service Ship Propulsion Heavy Vehicle Locomotive USMC RSTV Industrial Marine Sensors, Unmanned Vehicles, Portable Generators Vehicles, Mobile Generators COMPANY PROPRIETARY ©2008 By SCRA. All Rights Reserved

9. World Class Geothermal Resource First power from Coso Field in 1987 through PPV Enough power to supply electricity to 180,000 homes 18,000 gigawatt-hrs to date DOD Lead Agency for Technology Transfer and development Awarded NAS Fallon Nv –Plant Sized at 30 MW Assisting Army at Hawthorne, NV Exploring NAF El Centro, CA Four power plants – 2 Navy & 2 BLM Nine turbine-generator sets 270 MW Max net output Two transmission lines 166 wells, >200,000 lineal feet of pipe $850M invested by operator Navy revenue reinvested in energy program COSO Facilities NAVY I Power Plant Drilling Rig Geothermal COMPANY PROPRIETARY ©2008 By SCRA. All Rights Reserved

10. Solar/Photovoltaic Two largest federal U.S. Photovoltaic Projects –750 Kilowatt Photovoltaic Parking Garage at Naval Base Coronado, North Island, Ca –1.1 Megawatt Photovoltaic Generating Plant at Marine Corp Base,Twenty Nine Palms Ca –Together these projects avoid burning 6,000 Barrels of Crude Oil and save $620K annually FY06 and 07 ECIP will fund four Solar- Photovoltaic Projects DOD Lead Agency for Technology Transfer and Development Still very expensive Naval Base Coronado MCB 29 Palms COMPANY PROPRIETARY ©2008 By SCRA. All Rights Reserved

11. Wind Two Remote Location Wind Farms –3.8MW Wind Diesel Hybrid at Naval Station Guantanamo Bay, Cuba 25% stations power requirements saving $1.2 Million of energy cost annually –675KW wind turbine at NB Coronado San Clemente Island Ca 15% of stations power requirements Viable for remote locations where wind –diesel hybrid can be developed NS Guantanamo Bay San Clemente COMPANY PROPRIETARY ©2008 By SCRA. All Rights Reserved

12. Wave Power MCB Kaneohe, HI –Small Business Innovative Research project –Prototype buoy –Ultimate goal 1MW array –Non-polluting Other technologies –Permanent Magnet Linear Generator Power Buoy COMPANY PROPRIETARY ©2008 By SCRA. All Rights Reserved

13. Red Hook Water Pollution Control Plant Brooklyn, New York COMPANY PROPRIETARY ©2008 By SCRA. All Rights Reserved

14. Screaming Eagle Road Landfill Richland County, South Carolina COMPANY PROPRIETARY ©2008 By SCRA. All Rights Reserved

15. Collins Chick Farm Lamar, South Carolina COMPANY PROPRIETARY ©2008 By SCRA. All Rights Reserved

16. A “Green” Brewery Sierra Nevada Brewing Company, Chico CA COMPANY PROPRIETARY ©2008 By SCRA. All Rights Reserved

17. There is no single answer or “silver bullet” –The “answer” to meeting our nation’s long term energy requirements will be a family of technologies, practices and procedures –As the “family” develops and grows there will be the danger of “fratricide” among competing technologies (ethanol vs. hydrogen, clean coal vs. biodiesel, etc.) Much of the innovation required to bring these new technologies to the point of commercialization is occurring in small, entrepreneurial companies (not the big energy companies and utilities) –Governments (federal, state and local) can help accelerate this transition through forward-looking policies and “first adopter” leadership –Energy marketers can leverage these emerging opportunities to provide a larger menu of choices for their customers, a subset of whom already would be willing to pay a premium for products that are energy efficient, “green” and/or “renewable” And the Answer to our Energy Future is… COMPANY PROPRIETARY ©2008 By SCRA. All Rights Reserved

18. Questions? Contact information: Russ Keller Senior Director, Alternative Energy Programs South Carolina Research Authority 5300 International Blvd. N. Charleston, SC 29418 (843) 760-4358 (phone) (843) 207-5293 (fax) kellerr@scra.org COMPANY PROPRIETARY ©2008 By SCRA. All Rights Reserved